DoD Awards $45.6M for Pipeline Fuel Transport, Facing Foreign Awardee Uncertainty

Contract Overview

Contract Amount: $45,663,206 ($45.7M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2020-01-17

End Date: 2020-05-16

Contract Duration: 120 days

Daily Burn Rate: $380.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: GROUND FUEL,CORP(111TH,201ST,207TH,209TH,217TH)DO#12

Plain-Language Summary

Department of Defense obligated $45.7 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: GROUND FUEL,CORP(111TH,201ST,207TH,209TH,217TH)DO#12 Key points: 1. Significant contract value for essential fuel logistics. 2. Competition method is 'Full and Open', but awardees are undisclosed foreign entities, raising transparency concerns. 3. Risk associated with foreign awardees and potential lack of direct oversight. 4. Sector is transportation, critical for military operations.

Value Assessment

Rating: questionable

The contract value of $45.6M for 120 days of service appears high for pipeline transportation. Benchmarking is difficult due to the undisclosed nature of the foreign awardees and lack of specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as 'Full and Open Competition', the awardees are listed as 'Foreign Awardees (Undisclosed)'. This lack of transparency hinders price discovery and makes it difficult to assess if the best value was truly obtained.

Taxpayer Impact: Taxpayer funds are being spent on critical infrastructure, but the lack of transparency regarding foreign awardees makes it challenging to ensure optimal value for money.

Public Impact

Ensures critical fuel supply chain continuity for military operations. Potential national security implications due to reliance on undisclosed foreign entities for essential services. Lack of transparency may erode public trust in the procurement process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Undisclosed foreign awardees
  • Lack of transparency in competition outcome
  • Potential national security risks
  • High contract value for short duration

Positive Signals

  • Full and open competition was utilized
  • Essential service for military readiness

Sector Analysis

This contract falls within the transportation sector, specifically pipeline logistics for refined petroleum products. Spending in this area is crucial for military readiness, but benchmarks are hard to establish due to the unique nature of the awardees.

Small Business Impact

The data indicates no specific involvement or set-aside for small businesses in this contract. The focus appears to be on larger, potentially foreign, entities capable of managing complex pipeline operations.

Oversight & Accountability

The 'Undisclosed Foreign Awardees' status raises significant oversight questions. It is unclear how the Department of the Army is ensuring performance, compliance, and accountability from these entities.

Related Government Programs

  • Pipeline Transportation of Refined Petroleum Products
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Lack of transparency regarding awardees
  • Potential national security risks
  • Difficulty in assessing value for money
  • Unclear performance oversight mechanisms

Tags

pipeline-transportation-of-refined-petro, department-of-defense, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.7 million to FOREIGN AWARDEES (UNDISCLOSED). GROUND FUEL,CORP(111TH,201ST,207TH,209TH,217TH)DO#12

Who is the contractor on this award?

The obligated recipient is FOREIGN AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $45.7 million.

What is the period of performance?

Start: 2020-01-17. End: 2020-05-16.

What specific criteria were used to select the undisclosed foreign awardees, and how is their performance being monitored to ensure value for taxpayer money?

The provided data does not detail the selection criteria for the undisclosed foreign awardees. Effective monitoring would typically involve rigorous performance metrics, regular site inspections (if applicable), and clear communication channels. Without this information, assessing value for money is speculative, and oversight effectiveness is questionable.

What are the identified national security risks associated with awarding pipeline transportation contracts to undisclosed foreign entities, and what mitigation strategies are in place?

Risks include potential supply chain vulnerabilities, data security breaches, and reliance on entities whose national interests may not align with the US. Mitigation strategies could involve stringent vetting processes, cybersecurity protocols, and contingency plans for service disruption. The lack of disclosure suggests these risks may not be fully transparently managed.

How does the Department of the Army ensure fair pricing and prevent potential overcharging when contracting with foreign entities whose operational costs and profit margins are not publicly scrutinize

Ensuring fair pricing with foreign, undisclosed entities is challenging. Standard practices include market research, cost analysis, and negotiation. However, without transparency into the awardees' cost structures, the government relies heavily on the competitive process and contract clauses. The 'Full and Open' nature is intended to drive competition, but the undisclosed awardees complicate this.

Industry Classification

NAICS: Transportation and WarehousingOther Pipeline TransportationPipeline Transportation of Refined Petroleum Products

Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91B4N17R0005

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $45,663,206

Exercised Options: $45,663,206

Current Obligation: $45,663,206

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91B4N17D0006

IDV Type: IDC

Timeline

Start Date: 2020-01-17

Current End Date: 2020-05-16

Potential End Date: 2020-05-16 00:00:00

Last Modified: 2021-08-20

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